Important note: The Board Resolutions are as reported in the Board Meeting Transcripts, Minutes & Resolutions portion of ICANN's website. Only the words contained in the Resolutions themselves represent the official acts of the Board. The explanatory text provided through this database (including the summary, implementation actions, identification of related resolutions, and additional information) is an interpretation or an explanation that has no official authority and does not represent the purpose behind the Board actions, nor does any explanations or interpretations modify or override the Resolutions themselves. Resolutions can only be modified through further act of the ICANN Board.

Whereas, the draft FY18 Operating Plan and Budget, the FY18 IANA Budget and the FY18 Five Year Operating Plan Update were posted for public comment in accordance with the Bylaws on 08 March 2017, which was based upon community consultations, and consultations with ICANN Organization and the Board Finance Committee, during the current fiscal year.

Whereas, comments received through the public comment process were discussed by ICANN Organization members during several calls with representatives of the ICANN bodies that submitted them, to help ensure the comments were adequately understood and appropriate consideration was given to them. The results of the calls and responses to the comments have been thoroughly discussed by the BFC members.

Whereas, the public comments received were considered to determine required revisions to the draft FY18 Operating Plan and Budget, the FY18 IANA Budget and the FY18 Five‐Year Operating Plan Update.

Whereas, in addition to the public comment process, ICANN actively solicited community feedback and consultation with the ICANN Community by other means, including conference calls, meetings at ICANN 58 in Copenhagen and email communications.

Whereas, at each of its recent regularly scheduled meetings the Board Finance Committee (BFC) has discussed, and guided ICANN Organization on the development of the FY18 Operating Plan and Budget, the FY18 IANA Budget and the FY18 Five‐Year Operating Plan Update.

Whereas, the BFC met on 09 June 2017 to review and discuss the suggested changes resulting from public comment, the final FY18 Operating Plan and Budget, the FY18 IANA Budget and the FY18 Five Year Operating Plan Update, and recommended that the Board adopt the FY18 Operating Plan and Budget, the FY18 IANA Budget and the FY18 Five Year Operating Plan Update.

Whereas, per section 3.9 of the 2001, 2009 and 2013 Registrar Accreditation Agreements, respectively, the Board is to establish the Registrar Variable Accreditation Fees, which must be established to develop the annual budget.

Whereas, the description of the Registrar fees, including the recommended Registrar Variable Accreditation Fees, for FY18 has been included in the FY18 Operating Plan and Budget.

Resolved (2017.06.24.16), the Board adopts the FY18 Operating Plan and Budget, including the FY18 ICANN Caretaker Budget that will be in effect from the beginning of FY18 until the FY18 Operating Plan and Budget becomes effective in accordance with Section 22.4(a)(vi) of the ICANN Bylaws. The adoption of the FY18 Operating Plan and Budget establishes the Variable Accreditation Fees (per registrar and transaction) as set forth in the FY18 Operating Plan and Budget.

Resolved (2017.06.24.17), the Board adopts the FY18 IANA Budget, including the FY18 IANA Caretaker Budget that will be in effect from the beginning of FY18 until FY18 IANA Budget becomes effective in accordance with Section 22.4(b)(vi) of the ICANN Bylaws.

Resolved (2017.06.24.18), the Board adopts the FY18 Five Year Operating Plan Update. The FY18 Operating Plan Update shall become effective in accordance with Section 22.5(a)(vi) of the ICANN Bylaws.

Rationale for Resolution:

In accordance with Section 22.4 of the ICANN Bylaws, the Board is to adopt an annual budget and publish it on the ICANN website. On 08 March 2017, drafts of the FY18 Operating Plan and Budget, the FY18 IANA Budget and the FY18 Five Year Operating Plan Update were posted for public comment. The Public Technical Identifiers (PTI) Board approved the PTI Budget on 18 January 2017, and the PTI Budget was received as input into the FY18 IANA Budget.

The published draft FY18 Operating Plan and Budget and the FY18 IANA Budget were based on numerous discussions with members of ICANN Organization and the ICANN Community, including extensive consultations with ICANN Supporting Organizations, Advisory Committees, and other stakeholder groups throughout the prior several months.

The comments received from the public comment process resulted in some revisions to the 08 March 2017 draft FY18 Operating Plan and Budget. Notably the following consultation activities were carried out:

08 September 2017 and 13 September 2017 – Community webinar on the FY18 Planning Schedule.
08 November 2016: A four-hour budget working group session on the FY18 Budget assumptions was held in Hyderabad with over 15 community members, ICANN Organization members and Asha Hemrajani, Chair of the Board Finance Committee (BFC).
14 March 2017 – a three-hour budget working group session on the FY18 Operating Plan and Budget with over 15 community members, ICANN Organization members and Asha Hemrajani, Chair of the Board Finance Committee (BFC).
08 May 2017: Review/discussion with the Business Constituency (BC), the Intellectual Property Constituency (IPC), and the Internet Service Providers and Connectivity Providers Constituency (ISPCP) about the public comments submitted by these groups on FY18 Operating Plan & Budget (BFC members were advised).
09 May 2017: Review/discussion with the Non-Commercial Stakeholder Group (NCSG), the Non-Commercial Users Constituency (NCUC), the Not-for-Profit Operational Concerns Constituency (NPOC) and the Generic Names Supporting Organization (GNSO) Council about public comments submitted by these groups on FY18 Operating Plan & Budget (BFC members were advised).
15 May 2017: Review/discussion with the Registry Stakeholder Group of the FY18 Operating Plan & Budget about the public comments submitted by this group (Board member attending: Asha Hemrajani).
All comments received in all manners were considered in developing the FY18 Operating Plan and Budget, the FY18 IANA Budget and the FY18 Five Year Operating Plan Update. Where feasible and appropriate these inputs have been incorporated into the final FY18 Operating Plan and Budget, the FY18 IANA Budget and the FY18 Five Year Operating Plan Update proposed for adoption.

In addition to the day-to-day operational requirements, the FY18 Operating Plan and Budget includes the FY18 new gTLD budget items and amounts allocated to various FY18 budget requests received from community leadership. The FY18 Operating Plan and Budget also discloses financial information on the New gTLD Program, relative to expenses, funding and net remaining funds. Further, because the Registrar Variable Accreditation Fee is key to the development of the budget, the FY18 Operating Plan and Budget sets out and establishes those fees, which are consistent with recent years, and will be reviewed for approval by the Registrars.

The FY18 Operating Plan and Budget, the FY18 IANA Budget and the FY18 Five Year Operating Plan Update, all will have a positive impact on ICANN in that together they provide a proper framework by which ICANN will be managed and operated, which also provides the basis for the organization to be held accountable in a transparent manner. This will have a fiscal impact on ICANN and the Community as is intended. This should have a positive impact on the security, stability and resiliency of the domain name system (DNS) with respect to any funding that is dedicated to those aspects of the DNS.

This is an Organizational Administrative Function that has already been subject to public comment as noted above.